Bank of America Job Cuts Could Hit 30,000: Report
Bank of America Corp executives are discussing plans to potentially shed 25,000 to 30,000 jobs over the next several years, the Charlotte Observer said.
Bank of America executives are still working on the final plans regarding the workforce reduction, which could reach much more than 10,000 jobs, the Charlotte Observer reported, citing sources familiar with the matter.
Job cuts at the biggest U.S. bank, which the Wall Street Journal had reported could rise to 10,000 in the coming months, come on the heels of the bank's stock plunging over 40 percent since the beginning of this year.
The bank, part of a growing list of large banks that have been slashing their workforce, is expected to cut 3,500 jobs in the next few weeks as it continues to cope with its $1 trillion pile of problem home mortgages.
Bank of America, which recently received a $5 billion investment from Warren Buffett, has suffered a series of quarterly losses over the past two years, including a record $8.8 billion loss in its latest quarter.
In the first phase of the program, the bank's executives are examining the consumer side of the bank, the mortgage business and staff functions.
In the fourth quarter of this year and the first quarter of next year, they will tackle capital markets, wealth management and commercial banking operations, the Charlotte Observer said.
On a conference call with investors last month, Bank of America Chief Executive Brian Moynihan said the bank could cut as much as $1.5 billion in quarterly expenses.